THE TRAVELERS INSURANCE CO. V. BAILEY
124 Vt. 114, 197 A.2d 813 (1964)
NATURE OF THE CASE: This was a case involving the reformation of an insurance contract.
Bailey (D), insured, appealed a decree in favor of Travelers (P), insurance company; the
chancellor allowed reformation of the annuity provisions of a life insurance policy on the
basis of mistake.
FACTS: Travelers (P) made a mistake in the issuance of an insurance contract with Bailey
(D). D was 19 when he submitted his application to P for a life insurance policy. D wanted a
life insurance policy for $5,000 with an annuity at age 65 for $500 per year for the balance
of his life, ten years certain. The correct descriptive information was inserted on the
wrong policy form. The form yielded the correct life insurance amount but the annuity was
for $500 per month for life with 100 months certain. P did not keep a copy of the policy as
per industry practice but kept a record of the terms. The premium charged and paid was for
the $500 per year annuity. They discovered the mistake 30 years after the policy issued and
it involved the annuity portion of the policy. The requested policy was to have an annuity
of 500 dollars per year for life for ten years certain at age 65. The actual policy issued
had an annuity of $500 per month for life one hundred dollars certain. An amended policy was
tendered but D refused to accept it. There was no evidence that D knew his original policy
provided for an annuity payment larger than he was entitled to in the view of the premium
paid and for the life insurance provided. The trial court allowed reformation and D
appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
Get
free access to the entire content for Mac, PC or Online
for 2-3 days and free samples
of all kinds of products.
for 2-3 days and free samples of all kinds of products.
https://bsmsphd.com
© 2007-2016 Abn Study Partner
No comments:
Post a Comment